The Chandelier Exit technical forex indicator for Metatrader 4 is based on the ATR (Average True Range) trading indicator.
It’s a typical stop and reverse signal indicator, a little bit similar to the Parabolic SAR indicator.
It’s a popular short-term trend following MT4 indicator used in many forex systems and trading strategies.
Signals from the Chandelier Exit indicator are quite easy to understand:
A buy signal occurs when the orange Chandelier Exit signal line is aligned underneath the candlesticks in an uptrend.
A sell signal occurs when the magenta Chandelier Exit signal line is aligned above the candlesticks in a downtrend.
For buy trades, set a stop-loss 1- 3 pips below the orange signal line.
For sell trades, set a stop-loss 1- 3 pips above the magenta signal line.
Use the Chandelier Exit forex indicator for scalping, day trading and short-term swing trading.
The AUD/USD 1-Hour chart below displays the Chandelier Exit Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Chandelier Exit MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Go long when the Chandelier Exit signal line changes color from magenta to orange. Set stop-loss underneath the orange line.
Sell Signal: Go short when the Chandelier Exit signal line changes color from orange to magenta. Set stop-loss above the magenta line.
Trade Exit: Exit the trade when an opposite signal occurs or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (range, shift, ATR period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the chandelier-exit.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)